TSMC Q2 profit beats estimates, ups spending as AI boom continues

Net nett came successful astatine $22.36 cardinal for the quarter, good supra expert estimates of $19.74 billion, connected gross of $40.2 billion, up 33.7% from a twelvemonth earlier.

Gross borderline roseate to 67.7%, up of the 67.1% statement estimate.

The institution lifted its 2026 superior expenditure guidance to a scope of $60 cardinal to $64 billion, up from a anterior forecast of $52 cardinal to $56 billion. TSMC said capex implicit the adjacent 3 years would beryllium "even much importantly higher" than successful the erstwhile three-year period.

Shares fell astir 2% connected Thursday greeting pursuing the capex increase.

For the 3rd quarter, TSMC guided gross of $44.6 cardinal to $45.8 billion, supra the $43.11 cardinal expert estimation and representing 37% yearly growth. Gross borderline is expected betwixt 65% and 67%, with operating borderline seen astatine 56% to 58%.

High-performance computing remained TSMC's largest gross driver, accounting for 66% of the level premix and increasing 20% quarter-over-quarter. Smartphone gross slipped 4% sequentially to 22% of the total, portion automotive gross roseate 15% to scope 4%.

Advanced nodes continued to predominate output, with chips astatine 7nm and beneath making up 77% of wafer revenue. The 3nm and 5nm processes each represented astir a 3rd of the mix, portion the newer 2nm node contributed 3%.

TSMC besides expanded its US concern plans, announcing an further $100 cardinal committedness successful Arizona that brings its full US concern to $265 billion. The institution said its eventual American footprint could turn to 10 fabs and 2 advanced-packaging facilities, with 4 caller facilities expected to absorption chiefly connected 2nm logic production, though the last premix could displacement to 3 logic fabs and 1 packaging plant.

Construction timing has not been disclosed and volition beryllium connected marketplace conditions.

Looking further ahead, TSMC said it expects the ramp-up of its N2 process to dilute gross borderline by 3 to 4 percent points successful the 2nd fractional of 2026, with overseas fabs weighing connected margins by 2 to 3 points initially and 3 to 4 points successful aboriginal stages. The institution reiterated a semipermanent gross compound yearly maturation complaint of astir 25%, with AI accelerator gross maturation successful the high-50% range.